Copper price hit a 15-month high, optimistic sentiment rises on interest rate cuts.

Driven by the increasing risk appetite, copper prices surged to a 15-month high, with traders preparing for the expected rate cut by the Federal Reserve this week and seeking clues for further easing later in the year. London Metal Exchange copper futures rose 1% to $10,173 per ton, the highest since June 2024. Investors are anticipating a 25 basis point rate cut this week, with signs of weakness in the labor market and the high likelihood of two more rate cuts before the end of the year already being priced in by the money markets. Rate cuts typically support commodity prices like copper by boosting demand and weakening the US dollar, making it easier for buyers using other currencies to afford them.